Accountants benefiting most from economic upturn

The recent period of economic recovery has been a boon for accountants and is even starting to ease lending barriers for smaller companies, according to new research from the Confederation of British Industry (CBI).

Accounting, along with law and marketing firms saw their biggest increase in business since 2007 in the latest quarter, as per the CBI survey of 161 companies.

Optimism among survey respondents also hit a 15-year high and their business expansion plans have been the most ambitious since 2006.

CBI director of economics, Stephen Gifford, said...

Continued...

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Comments

Upturn?

rmf189 | | Permalink

We're not out of the woods yet!

Kent accountant's picture

A survey of 161 companies!?

Kent accountant | | Permalink

Well, if the survey was that BIG it must be right!

Crack open the champagne!

Time for change's picture

I'd just love to know

Time for change | | Permalink

which part of the country these "surveys" are carried out.

In my part of the UK (the North) I see no evidence of the recovery which both George Osborne and the CBI portray. Which accountants are benefiting most?

In my humble opinion, the difficulties have now gone on for more than 5 years (far too long) and, as I see it, another 5 would not be overly pessimistic.

Anyhow, what do I know?

Recent news that accountants

TwinfieldUK | | Permalink

Recent news that accountants are benefitting from the economic upturn is of course welcome, however as rmf189 suggests – we’re not out of the woods yet!

Accountancy practices know that the provision of new and innovative services is essential to remain competitive and drive new revenue streams. Growing numbers of accountancy firms are exploring the benefits of cloud based accounting solutions to facilitate better client collaboration and the delivery of new services based on real time information.

However, despite planned spending on IT rising sharply this year (+21% compared with +6%), too many practices are not using this investment to drive innovation. Not only can cloud based book-keeping solutions enable accountancy practices to consolidate, streamline and eradicate unnecessary IT costs, but they crucially provide an opportunity to transform the client relationship; rather than increasingly commoditised transactional book-keeping, firms can offer a range of services that essentially fulfil the role of a virtual Financial Director (FD).

If firms are hoping to expand their business (+39%), they need to adopt smarter business practices and innovate their business strategy around the provision of value-add accounting services, using cloud-based technology to further help towards recovery and encourage growth. 

Barbara Kroll
www.twinfield.co.uk